Guoyuan Securities2·2025-09-09 09:13Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 9.60 per share, indicating a potential upside of 22% from the current price of HKD 7.87 [1][6][12]. Core Insights - The acceleration of national subsidies for renewable energy in August has exceeded expectations, signaling positive cash flow improvements for the company. The company is expected to benefit significantly from the recovery of outstanding subsidies, which amount to over RMB 30 billion [3][9]. - The company has committed to a dividend payout ratio of at least 30% of net profit attributable to shareholders for the years 2025-2027, with an initial interim dividend of HKD 0.1 per share planned for 2025, reflecting a strong focus on shareholder returns [4][10]. - The company achieved a total power generation of 5,273,319 MWh in August 2025, a year-on-year increase of 5.56%, with wind and solar power generation growing by 22.38% and 74.41%, respectively. The target for new installed capacity in 2025 remains at 5 GW, which is expected to support stable performance growth [5][11]. Financial Summary - For FY2025, the company is projected to generate revenue of RMB 32,526 million, a 3.7% increase from the previous year, with net profit attributable to shareholders expected to reach RMB 6,622 million, reflecting a growth of 3.8% [7][15]. - The earnings per share (EPS) for FY2025 is estimated at RMB 0.79, with a price-to-earnings (P/E) ratio of 9.1 based on the current share price [7][15]. - The company plans to maintain a dividend of RMB 0.238 per share for FY2025, resulting in a dividend yield of 3.31% at the current price [7][15].